Intuitive Surgical sees slower da Vinci procedure growth, expects 1% tariff hit to 2026 margins

Intuitive Surgical

16/07/2026 21:24

Overview
Robotic surgery firm's Q2 revenue rose 19% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat consensus, driven by higher procedure volumes and system placements
Company repurchased 0.9 mln shares for $380 mln in Q2

Outlook
Intuitive Surgical expects 2026 da Vinci procedure growth of 13.5% to 15.5%
Company sees 2026 non-GAAP gross profit margin between 68.0% and 69.0% of revenue. This range includes an estimated impact from tariffs of 1.0% of revenue
Company expects 2026 non-GAAP operating expense growth of 11% to 13%

Result Drivers
PROCEDURE GROWTH - Co said higher Q2 revenue was driven by 15% growth in da Vinci procedure volume and 36% growth in Ion procedure volume
SYSTEM PLACEMENTS - Higher systems revenue reflected increased da Vinci system placements and higher average selling prices
TARIFF REFUND - Q2 net income included a $28 mln benefit from refunds for tariffs paid in prior periods under IEEPA

Company press release: ID:nGNXr4tqr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2.89 bln
$2.82 bln (26 Analysts)
Q2 Adjusted EPS
Beat
$2.80
$2.50 (24 Analysts)
Q2 EPS
 
$2.29
 
Q2 Adjusted Net Income
Beat
$1.00 bln
$897.85 mln (21 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"
Wall Street's median 12-month price target for Intuitive Surgical Inc is $558.00, about 43.5% above its July 15 closing price of $388.97
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 44 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)